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6.3. SR 11-14-2011REQUEST FOR ACTION TO ITEM NUMBER Ma or and Ci Council 6.3. AGENDA SECTION MEETING DATE PREPARED BY Worksession November 14, 2011 Rebecca Haug, Environmental Administrator ITEM DESCRIPTION REVIEWED B)/ Stormwater Utility Fee ustin Femrite, Ci En ~ eer REVIEWED BY Cal Portner, Ci Administrator ACTION REQUESTED Staff is requesting approval to hire a consultant to conduct an existing program assessment and gaps analysis of the city's current stormwater system and conduct a feasibility study for a Stormwater Utility Fee. BACKGROUND/DISCUSSION City staff presented information about the stormwater budget to the City Council on August 15, 2011. The staff report from that meeting is attached. During the meeting, staff was directed to determine cost estimates for putting a Stormwater Utility Fee in place. After further discussions with other communities, it was determined that an assessment of the current system and a gaps analysis would need to be completed prior to determining a fee structure. Staff requested quotes from three firms who provide these services. Unfortunately, the bids were not ready for this meeting, but based on conversations with the various firms and with other communities, the costs are anticipated to range from $4,000 - $6,000 for the assessment and gaps analysis and $15,000 - $25,000 to determine the fee structure. A majority of the work involved in the assessment and gaps analysis is a requirement of the city's Municipal Storm Sewer (MS4) permit through the Minnesota Pollution Control Agency. Without this information, determining a fee structure would be nearly impossible. It is anticipated that this work would begin in January with the intention of having the final results from the fee study completed prior to budget discussions. FINANCIAL IMPACT Up to $31,000 from the Surface Water Management Fund ATTACHMENTS ^ Staff report dated August 15, 2011 Action Motion by Second by Vote Follow Up N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\l 1-142011\Stormwater.docx ~~ is ~~. ~~~ MEMORANDUM TO. Mayor & city ~ouncii FROM: Rebecca Haug, Environmental Administrator Justin 1=emrite, +City Engineer Tim Simon, Finance Director DATE: August l5, 20l l SUBJECT: Storrr~~rater Budget BACKORO~.1N[~ 'I'l~z~ CFit~. r>f 1:1k lii~"ear ~,tas recluirc~d 1>~- the '~Iiltrles<~rsa T'<>Ilutioat (;<}titrc>} .~~Ltur ,lll't.~.1 to apl~}~> for t}le 'tiati<>nai l'<illuratlt l:}tscllal-~e } ;lit?3iltatiot. ~~telrl ~I'1;)1 :S1 C gel?erGtl Srvr2n ~~'.ttr•r I'c•I~tllit in. ?()t)3. '1'hc rcasc~n 1 :Ilc }Zr; er 1i its requit~ecl tr> st}?ply- fc>r this ~Seriz?it is the State clesi~tlated 1{~pro~inlatc~}~~ :~{) coma?urz€tie~ r}tr{3ut~}~otzt tlt~~ st<itc a~ i't:aaicti{~.a} S~.{~szrrtre :~tc>rt?~ Seer er ~~~ret??s t\I~~; because oi~ the ra~~ic( r,~rr3~~r~t in cic~ e,rsha?~iei~t ~~it}?;t~ t}7rss~: cc>r71t~~itl~iesc~~. '~`llis ~G.~zs it~~~>3EanentecI tl~rnti~,}~c~tir, t'ZZ° c-c~ttz~t.-~ anc~ is ~ I~ec}<t~a,l ar~~l Statc Lrizfur~ded t~aaiclat~cl prr~~;rat-rl. "I'hc pert7lit rc:clUit~~s tlzc cr~~i?~Int~lntric~s tc~ cie~•c~Ir>}~ =tad irn~~Ieal~c:nt i~e~t ;~l~~nril;<~mex~t 1~rdCttCCti atlCl 1CI?IL'\'t' ll?{;flSUt'di31t_' :,rolils to ~<ttitiE;" sl\ ll)lnti?11.f?? C(~Il:SCJl 1110<IZilrt'S. i }iC' 'itl ~{}~Ilti are 1'ul?lic ldttcaticm and C?ucreat^ll, 1'Ublic I'arttcipation/In~>,31,enlent; lihcir t~)ic}lame Dctecriol~ attd l:~litz?ination; ~~«llsctttction Site Runt>ff C~c,zitro;; atxi 1'r>ltltic3n 1'rcti cntic>n;'`C)ot>cl [ loust~kc°e}ntl~. Staff prese.nred the {~t-opose•c} ?LiI2 Storn?~~ater 13ucl~et c>zl Jt11~ l t, ?{11 l . .~,t rllar time. stns-{ informed the Counct}} t}?at the ~1PC:.~1 i4 in nc~t 1?roccs c>t issuing a ueLi° Sr<>r1?~u-°azer I'errt:it ii~r 1lunicit}al e}rxrtte Stxum Sr~tcr:~;-,tern x.1'15-~`; ccntn?zullirics. "1'lle E~rc>{7cswe<l {}i°.13,it ha sc>2?Ze c.astl~ rec{izit•e1??eats inchadrd r: it '1 }?e C:>ur.cil directed staff try ccn??e lrzc}; tit 1t1? tl.r, k>est al?c7 ~~-c3tst case sccz?<trx> frsr tt;riLlirz~>, rl~c (;it;' Stor:nti~•ztz~r nl:tiiaY;czi~tttr nrc,~r.tr.3. In an effort tc> detel•t??i11c the best utc} ~t r~rst case,, st;tff has 17e~~ n ;c3licirirl,~ icifl~rn?atic>n f1-+->tl~ other c~n?irrxunities <:3n projec:tccd cost; to i2np}rn~zent t}?e nel~ rec.}utrc:ttle~nrs c;>f the }~~r1?lit, as Drell <zs nforn~~ttic~al ran }?ot~~ t}?eir current prrs;~rarn is fiu?decl anc} hot~~ it ~~ ill lac ttzn(z~d if thct propr>sed {x~ral?it is a}~prot-ed. C;urrea~tl~.y l;lk Iti>.-c:r funds its Surf<trc l\`atcr ~1ialat;enze~nt 1''csnc} throtr;h a ~`~{t,t.?()() t:ttti leti-~" aatci t}tc rc2nait1il?~ ~3ulds a>ti?e t}?rou~;ll ~vitll im}t;ict fres for det elc>p11?cau }>rojecrs. "I'}ire cttrrc:nr fcr~ .;c}?cc}trle i:~: S,[;R1;M~C,1: ~~-':~"I'} ;R ~I.~:~1C~1;.llF•:'~'t' 1_~IP:1(:"1 }~ I .I ; e /~ `'r, ,rrtrstuzl to "t''r~.~r l;~r ; ~.,rrllrl~~rrr "-/ - r X11 ~9`~r'resiClential iot ntrali ~1c1Cf`z-esidcYatial lot t`tu-lrtzaj '~"I,17~} ,r'acre z77t11tif<1t11i1~, r_;]t11z17ercis3l, anti. ]tlclurz•ial'J F1ND1_NGS "Iilere. are currentl~° t«-o oj~tiotl~ hr:iT1 uti}i~ecl b€ other con1311xlnittcs el7roa;laout the `~r3te. 117 teSClrClltll~ otllt`r CfirT1211utittlC"ti, 3 211aj(irlt\' O~•tlleTll Charge. %hCt.L 1'e51CjCIltti ''<t t"II("Sntll~b' tCl'. i 11E` lC'(' t°;lns~e tr<)zn `*l.t3 (Little Fails,: to `~1 .(?r) ,~~'lulnc•llx)iis. 111c~e feeti are ,cj~iC.~1i~ 13illecl~l)i rt~c)ntlllt- r>n the rc~siclet7ts' utility bill. \1~)~t r>f these c;, sclul:tuaittr•s als<y hai-c a fee struccu:-c~ ~Ct ul? i~r cotn7rtercial, industrial, and institutiti>t1a1 }>ro}zc=roes. '!'hc>~c aces ~"ax~r eesn;icicarahh~ cic:j-~nnciin;r r>n the. cor;,rnunitZ°. 'f'lat: Ects Cs)t er the. Cots tr) implenlc.tr the \I'I~I?S }~crt7air, zn<lizltain thc~ e:~is,tinf; titor*Yf~~-°;ttcr infrastructurt~, s~zch <ts c;trch basing and. storlla 1~acer }71}~t.s, c•tica~";atiur> serlizne~alr in stc~l°m }x>n~ls, the installatioza of a ates clualin }~rrrjec:t>, arYCl r>t er<tll tnailttenance c)t t}1t° st<)rm se~~ er s~ stem. "1'he {>tllcr option. heiu; utilvc~d is thr<>tls;ll a tai: le; ,. `I he estinaatecl Cr)st to t77cc~t rite. rnuauaium }~crrrit recl~tu-ements m 2{j 12 ha4 Iauz1 tlercrz7lr.laed ro lac° `±"1 <)(t, ~{). 7'17 atlltttzat ~~-i11 cover t17c cost, ,~k tl7c; ccju~mc:n* astci sct~-ic_c s rteeclccl t:} cl<) the tlcccssaz~- ~~ orlc to inal~ro~ c flat s~ Stella. i~or t11C ?i)"i.? 1,)tld~;ct:, if tllt; tai lc~~ t' reln::irts ti1e~ same., tlli~re ~~ -- ts crnotl~~t1 T11onc r for do131~; the T~~~}tz~tetacrllts. ({c,l~~e~t-er, ]]7 ~?i}1.>, there. t~°]ll tYOr, be suft~cYent filnd5 ro meet the redctirernents cif this }~ro;~t<tna. 'I`Izis hro~7ata l"~as 1>t,eza i'unclt~d j>ritnarih- throtllrh clef°elopnlent btzr ~>=~it17 the i~tc:k rtf det"elc)~7ne:nt, r:;tc fulld~ are. chnaulishi>t~r even though r11e C;itl- still 11eed~ 10 Y71a1L1t<1rI1 ItS .`~L<7rI711~-titer `~t'SCel71. .117 OrCler t0 Ct:t1t]t1Lle S71C'C'tITiZ~ the. rC'Cltllf't'111e12i~ of the permit, a fee. stnlcture ~~-aulc~ ]feed to be institumd or all allcrea~e ill the r;~ts le.~ ~' ~~-c)ctitl be red3.ired ira 2!)t:~. CONSIDERATIQN5 "I`~~-o o}~ti{>I1<. to 1>e cc>zZ,idet~ecl ~tre: Set np a rate structctre fc)r all propert.: ~>~~.1t is (residential, cotr7nle~rci;l, incltistr.tl, 1nStlttlfitoTt?il, etCj. C1. T'>aJC'Cl (}17 Conti'C'r~aUt)nS ll"ltil C)i~lE';' C~3t11711t1.T11ti<'S, r~11S t~'lI~ I"?e CCSy' 1131.3r'3r lnttiltlV'f?. n Staff ~~ ottlcl I)e rcciucsn111; ;tt a tlliltimut7l :tn additional ~ ~(i,(i+){1 to coYlch3C.t a 5ttzciti~ i,: 2i)1 ~ tt> clcrerllailte the iznpertricnzs ~t._:fsar.<%acrearre fo1~ all }~rz)~IC~.rtic°~ ~~-ithin t11e (:its limits. i'he reason for dc>itati this, is r~) calsttre that l~rol7crt; oti't•nc:rs are heilar? trc:Gltccl Eait1~~ and nc,t l>eilzg Chartzerl a f~c~ i'rher ;are Currcnrit~ trcatinr all tl~telr Stor~tl)~~-titer. 'I-hc~other eotlu"7ltznhlcs alk>t~ fi,)r :eta e ;emptions to tho;~e properties. 'I11ic would l>e fullclecl oclt of tl"te :~tYrface `L~t'ater .^,fan.t~;et7lc~nr }•'und. `I'l7e C~ir~° of }i<>r,ers }}aid }~pro~italateLl- ~2(,',tJt)(} to ha~~e dais t~>hc elf sn1d~° c:onapl~~ted. 1>. "inert t~-oul;11)e adnlinistratite cots assoCiatecl i~ith 1:11: 12ivel• 1~113rYic.ipai 1"tiiities clr)itl;? the l)ilint; f<>r the (::it€. C )rcftn3nc;c~ amUndzlacnt tv{~~uld i:le tt:;uit:cd ? Increase the tam lc.~~~- in futtarr ~'c<irs tc> corer the costs of the w~rr~~xratll ;_ ~.. 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